The stabilizing effect of social distancing: Cross-country differences in financial market response to COVID-19 pandemic policies
| Autor: | Martin Brumpton, Steve J. Bickley, Richard Colthurst, Ho Fai Chan, Benno Torgler |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
040101 forestry
Government medicine.medical_specialty 050208 finance Social distance Public health 05 social sciences Financial market Psychological intervention 04 agricultural and veterinary sciences Politics 0502 economics and business Development economics Financial analysis Economics medicine 0401 agriculture forestry and fisheries Business Management and Accounting (miscellaneous) Volatility (finance) Finance |
| Zdroj: | Research in international business and finance. 58 |
| ISSN: | 1878-3384 |
| Popis: | COVID-19 has had far-reaching global effects on the health and wellbeing of individuals on every continent. The economic and financial market response has been equally disastrous with high levels of volatility observed. This study explores the temporal relations between structural breaks, market volatility and government stay-at-home policy interventions and social distancing measures for 28 countries and their respective indices. We present results which indicate the establishment of stay-at-home policies influence sharp discontinuities in 15 of 28 markets (53.57 %) and increase market efficiency in 30 of 49 cases observed (61.22 %). These results indicate a small, statistically significant degree of stabilization in international financial markets responding to government stay-at-home policies and social distancing measures, a promising result for political actors concerned with economic performance during the public health response to the coronavirus 2019 pandemic. |
| Databáze: | OpenAIRE |
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